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UC releases latest cost and returns for ranchers raising beef cattle
Among California's agricultural commodities, cattle rank fifth in revenue. The University of California Agriculture and Natural Resources' Agricultural Issues Center has released a new study showing the cost and returns of a beef cattle operation.
“Ranchers can use UC beef-cattle cost studies to guide their production decisions, estimate their own potential revenue, prepare budgets and evaluate production loans,” said Rebecca Ozeran, UC Cooperative Extension livestock and natural resources advisor for Fresno and Madera counties.
The study estimates costs and returns of a representative owner-operated beef cattle operation located on rangeland in the Central San Joaquin Valley and foothills of Madera and Fresno counties. The study describes a 200-head cow-calf operation and includes pasture costs on the basis of the rental per animal unit month.
The analysis is based upon a hypothetical cow-calf operation, where the cattle producer both owns and leases rangeland. The “typical” ranch in the Central San Joaquin Valley is an owner-operated cow-calf operation, often relying on multiple private leases. The operations described represent production practices and materials considered typical of a well-managed ranch in the region.
Input and reviews were provided by ranch operators, UC Cooperative Extension farm advisors and other agricultural associates. The study describes in detail the assumptions used to identify current costs for the cow-calf herd, material inputs, cash and non-cash overhead. The cost calculations in this study are based on economic principles that include all cash costs and overhead costs. The study also includes a “ranging analysis” to show potential net returns over a range of market prices. Other tables show the average costs and revenues, the distribution of monthly costs and revenues over the year, and the annual equipment, investment and business overhead costs.
“In addition to producing meat, cattle play an important role in California's landscape and environment by grazing on vegetation that could fuel wildfire,” Ozeran said. “Ranching therefore has ecological and social impact on rural and fire-prone communities. If we can help ranchers remain economically viable, then we help support local stewardship of productive natural landscapes and contribute to fire resiliency and food security.”
The new study, “Sample Costs for Beef Cattle, Cow-Calf Production - 200 Head Operation, Central San Joaquin Valley - 2019” is authored by Ozeran, Donald Stewart, staff research associate of the University of California Agricultural Issues Center; and Daniel A. Sumner, director of UC Agricultural Issues Center.
This study and other sample cost of production studies for many commodities are available for free download at http://coststudies.ucdavis.edu. The program is supported by UC Agriculture and Natural Resources, including both Agricultural Issues Center and UC Cooperative Extension, and the UC Davis Department of Agricultural and Resource Economics.
For more information, contact Stewart at (530) 752-4651 or destewart@ucdavis.edu. To discuss this study with a local UC Cooperative Extension farm advisor, contact your county UC Cooperative Extension office https://ucanr.edu/About/Locations or contact Rebecca Ozeran at (559) 241-6564 or rkozeran@ucanr.edu.
Livestock grazing helps California tackle wildfire
California is searching for solutions to the wildfire crisis. Livestock ranchers believe they can help.
At the 14th Annual Rangeland Summit in Stockton in January, more than 150 ranchers, public land managers and representatives of non-profit organizations that work on land conservation gathered to share research and experiences that outline the value of cattle and sheep grazing on rangeland.
Since California was settled by Europeans, cattle and sheep have been an integral part of the state's history.
“Cattle can control brush,” said Lynn Huntsinger, UC Cooperative Extension specialist at UC Berkeley in a presentation on brush management. She discussed research she conducted in the early 1980s to understand the role of cattle in Sierra Nevada brush control.
“We need to make livestock into firefighters,” she said. “Constant, deliberate, targeted grazing is needed for fire management.”
However, thick, overgrown brush requires intensive treatment that cattle can't handle on their own.
“You have to start from a good place,” Huntsinger said. “Start early, such as post fire. Plan when you have a blank slate for the forest you want.”
The tragic loss of homes and lives to wildfire in the last few years has increased the public demand for answers and action. However, the reasons for greater frequency and intensity of wildfire are not well understood.
“Is it climate change? Past decisions? Land use? What can we do about it?” asked UC Cooperative Extension specialist Van Butsic. “Research.”
At the summit, Butsic presented the results of his recent research to determine whether ownership has an impact upon whether land will burn. He and his colleagues studied the burn histories of forest and rangeland areas that were matched with the same characteristics, except in ownership.
“We controlled for all factors – slope, elevation, the likelihood of ignition,” he said. “We found that on forest and rangeland, federal ownership led to .3 percent higher fire probability. Ownership is dwarfing the impact of climate change.”
There is still much more research to be done.
“We can't say the impact of grazed vs. ungrazed land,” Butsic said. “We also need to look at fire severity as well as fire frequency.”
The UC Cooperative Extension advisor in Modoc County, Laura Snell, shared preliminary results at the rangeland summit that provide information for landowners making decisions about returning livestock to burned areas.
She and a team of colleagues studied the fire history of U.S. Forest Service and Bureau of Land Management rangeland in Lassen and Modoc counties where fires had burned through 5, 10 and 15 years before. The dataset included information about whether the land was “rested” for two years after the fire, or whether livestock were returned to graze soon after the blaze.
The scientists set out to determine whether fire intensity and climate at the site (measured by soil temperature and moisture) had an impact on the future diversity of plant species and growth of cheat grass, an invasive species that animals don't like.
“No matter what we did, graze or not graze, after 15 years, the species richness stayed the same,” Snell said. “Grazing was not the driving factor.”
The results are also important in terms of fuels accumulation and the prevention of future wildfires.
“Federal land managers have typically used a policy to rest the land for two years after a fire. During the interval, the fuels sometimes burn again and livestock producers have to wait another two years,” Snell said. “Our research showed you don't necessarily need to rest the land after the fire.”
Two ranchers who were recently impacted by wildfire presented their experiences and perspectives during the rangeland summit.
Mike Williams of Diamond W Cattle Company had livestock on 6,500 acres of leased land in Ventura County when the Thomas Fire ignited on Dec. 4, 2017. Over more than a month, the fire burned 281,893 acres and consumed 1,000 structures.
Williams had stockpiled feed on certain pastures by limiting grazing, which during the fire turned into hazardous fuel.
Adam Cline, rangeland manager for the Yocha Dehe Wintun Nation Preserve in the Capay Valley, had a similar experience when the County Fire burned more than 90,000 acres in western Yolo and eastern Napa counties in June and July 2018. To reserve feed for later, Cline had left 2,500 pounds per acre of residual dry matter on grazing land as a drought mitigation strategy. He said he plans to reconsider this grazing plan.
“Now, cattle feed looks like a lot of fuel,” he said.
Thinking about going into the cattle business? New UC cost study for beef cattle operation helps ranchers plan
A new study on the costs and returns of a beef cattle operation has been released by the University of California Agriculture and Natural Resources' Agricultural Issues Center. The estimated costs can help ranchers and land management agencies on California's Central Coast make business decisions.
“This cost study can be a valuable tool for someone who is thinking about going into the cattle business because it will help them think through the various categories of costs, and aid in developing a budget and business plan,” said Devii Rao, University of California Cooperative Extension livestock and natural resources advisor for San Benito, Monterey and Santa Cruz counties.
Based on the typical costs of a 300-head cow-calf operation, the study estimates costs of an owner-operated beef cattle operation located on leased rangeland in the Central Coast region of California. The cost calculations in this study are based on economic principles that include all cash costs and uses the rental cost per animal unit month (AUM) as a cost of pasture.
“The study can also be used by a seasoned rancher,” said Rao, a co-author of the study. The first cost table has an empty column titled, “Your Costs.” This is probably one of the most useful pages for the experienced rancher. Producers can use this column to enter their own costs and compare them to the costs in the study. It will help them think about where they can make changes in their operation to reduce costs.”
The analysis is based upon a hypothetical cow-calf operation, where the cattle producer leases all rangeland. The “typical” ranch in the Central Coast is an owner-operated cow-calf operation using multiple private and public leases. The practices described represent production practices and materials considered typical of a well-managed ranch in the region.
Input and reviews for this study were provided by ranch operators, UC ANR Cooperative Extension farm advisors and other agricultural associates. A narrative describes the assumptions used to identify current costs for the cow-calf herd, material inputs, cash and non-cash overhead. A ranging analysis table shows profits over a range of average market prices. Other tables show the costs and revenue for production, monthly summary of costs and revenue, and the annual equipment, investment and business overhead costs.
“This study will also be of value to land management agencies that lease their lands for cattle grazing,” she said. “Many agency staff are not familiar with the different aspects of cow/calf operations. For land management agency staff, the most useful portion of the study is likely to be the Operations Calendar, which summarizes the timeline for breeding, branding, vaccinating, calving, shipping, etc.”
“Sample Costs for Beef Cattle – Central Coast Region – 2018” can be downloaded for free from the UC Davis Department of Agricultural and Resource Economics website at https://coststudies.ucdavis.edu. Sample cost of production studies for many other commodities are also available at the website.
For additional information or an explanation of the calculations used in the studies, contact Donald Stewart at the Agricultural Issues Center at (530) 752-4651 or destewart@ucdavis.edu.
For information about beef cattle production in the Central Coast region, contact Rao at drorao@ucanr.edu.
Ventura ranchers thank UC Cooperative Extension
The Ventura County Cattlemen's Association publicly thanked UC Cooperative Extension and other organizations for their support during the devastating wildfires of late 2017.
In the space of 12 hours, the Thomas Fire ripped through vital grazing land that cattle rely on for their daily feed. Some animals were also killed in the fire. In a letter to the Ventura County Star, Beverly Bigger, president of the Ventura County Cattlemen's Association, said UCCE livestock and range advisor Matthew Shapero, the Ventura County agricultural commissioner and representatives of Ventura County animal services established an emergency program to supply five days of hay until ranchers could get on their feet.
UC Cooperative Extension also served as a one-stop location where ranchers could meet with representatives from multiple agencies to apply for assistance programs.
"We want to thank and recognize them for helping us in our time of need. We look forward to returning to our passion: managing and improving the land and continuing Ventura County's ranching heritage," Bigger wrote.
Videos show hikers how to avoid Black Friday stampedes on park trails
While Americans traditionally beat a path to the malls the day after Thanksgiving, many opt out of shopping on Black Friday to enjoy the outdoors. In regional parks and other open spaces, hikers may encounter crowds of a different sort – cattle grazing with their calves. A 1,200-pound cow blocking the path can be daunting.
With a little patience and understanding, people who hike, bike and horseback ride can coexist peacefully with the cattle, according to Sheila Barry, UC Cooperative Extension livestock and natural resources advisor in Santa Clara County.
For happier trails, UC Agriculture and Natural Resources has produced a series of videos that show hikers how they can amicably share open space with their beefy neighbors. In a two-minute video, a black cow puppet with a furry white face describes how to politely coax cows to moo-ove aside without spurring a Black Friday stampede.
“We wanted to produce videos that are entertaining as well as informative,” Barry said.
The cow pun-filled video also describes the ecosystem services cattle provide by consuming nearly their body weight in plants. By grazing, cows manage the vegetation, reducing wildfire fuel, increasing water capture and promoting the diversity of native grasses and wildflowers.
In “Sharing open spaces with livestock,” the UC Agriculture and Natural Resources livestock experts give four simple tips for safely sharing open space with cows on the trail:
- Keep moo-ving and speak in a normal tone. Sudden movements and loud noises may surprise cows.
- Approach cows from the side or front. They find it udderly unnerving to have someone sneak up from behind, the bovine blind spot.
- Steer clear of getting between a protective mother and her calf.
- If you need to move a cow, step slowly into its flight zone. Invading the animal's “personal space” will motivate it to mosey aside.
A second video, “Sharing open spaces with livestock when you have a dog,” gives advice for dog owners to keep their best friends safe around cows.
In a third video, “A year in the life of a cow,” the UC Cooperative Extension spokespuppet describes a typical year for a beef cow.
“The videos are a fun way to educate the public about grazing on rangelands,” said Stephanie Larson, UC Cooperative Extension livestock and rangeland advisor in Sonoma County.
The videos are based on the UC ANR publication “Understanding Working Rangelands,” authored by Barry and Larson, at http://ucanr.edu/shareopenspace.
Watch all three videos on UC ANR's YouTube channel:
Sharing open spaces with livestock https://youtu.be/Qd8LEGLDhaM
Sharing open spaces with livestock when you have a dog https://youtu.be/zzdGnfFwmcA
A year in the life of a cow https://youtu.be/znJbWknVXVg
